Prairie Lithium (ASX:PL9) has this week signed a binding definitive agreement with South Korean Hydro Lithium for the total offtake of Phase One production from its lithium project in Saskatchewan, Canada. The deal will also include ~A$10 million in advanced proprietary refining equipment from Hydro Lithium, to establish a direct downstream pathway for the project’s initial commercial output.
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“This is a monumental agreement for Prairie, as we now capture the entire value chain from resource to battery-grade production,” said MD Paul Loyd.
He continued: “Hydro Lithium is an incredible project partner for us, with existing operations and battery-grade lithium production. This provides us a very clear path in which we will establish and grow revenues, and be one of the first lithium brine producers in North America bringing new lithium to market.”
Under the terms of the agreement, Hydro will buy 100% of Phase One production, which is equal to 150 Tonnes Per Annum (TPA) of Lithium Carbonate Equivalent (LCE).
This serves as Prairie’s initial commercial-scale proof of concept. To support the CY26 operation, Hydro will operate its proprietary refining equipment on-site in Saskatchewan to provide third-party validation of the project and support a lower-capital pathway toward first Saskatchewan production.
The definitive agreement carries an opening ten-year term, Prairie told shareholders today, with several options for renewal by mutual Prairie-Hydro agreement for further ten-year increments up to thirty years.
The overall offtake deal is aimed at a Q4 CY26 start, The Market Link understands, should everything proceed okay in the final agreement negotiations.
Beyond the commercial benefits, we are incredibly excited by the level of support and enthusiasm shown by both the Canadian and South Korean governments for this collaboration,” Mr Lloyd added today.
“This represents a significant bridge between our two nations in the global critical minerals supply chain. By combining Saskatchewan’s world-class resources with South Korea’s leading processing tech, we’re delivering exactly the kind of international cooperation required to power the transition.”
Hydro Lithium’s CEO, Dr Uong Chon, said: We are very excited to sign the strategic collaboration agreement with Prairie Lithium. Prairie is one of the most advanced lithium brine projects in North America and is the leading Canadian lithium brine project. Saskatchewan has very high-quality brine resources, and we look forward to sourcing our lithium from Saskatchewan.”
PL9 is heading into Thursday @ ~0.6cps.
Hydro is listed on the KOSDAQ, where it’s 2,180KRW/share.
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